Geopolitics Accelerates Stablecoin Adoption in Southeast Asia
Stablecoins has doubled to $250 billion today from $120 billion 18 months ago. Established in 2014, the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) enacted earlier in July 2025 provides a regulatory framework for usage and issuance and is directing growing attention to the market. While still nascent, the market is expected to grow two to three times its current size, gaining traction in global markets. The E.U.’s Markets in Crypto-Assets (MiCA) framework has set the precedent for similar regulatory initiatives in Hong Kong, Singapore, and the United Arab Emirates.
Cross-border payments in Singapore surged more than 30% percent in 2024, and stablecoins are increasingly viewed as a more resilient medium to facilitate international trade and navigate differing market regulations. Some U.S financial services firms, including those of USABC members, are looking to scale up stablecoin adoption to increase their presence overseas while tapping into the opportunities presented for low-cost cross-border payments and lowered risks of exchange rate fluctuations. The Monetary Authority of Singapore treats stablecoins as digital payment tokens with specific requirements and is working to formalize its framework. This sets the precedence for growing stablecoin usage in Southeast Asia.
